THE number of companies in Scotland declared insolvent has risen by almost half in a year, a new report showed yesterday.

Accounting giant KPMG said economic volatility is behind the trend with Brexit and a change of government creating uncertainty for businesses.

The firm said there were 698 corporate insolvency appointments in Scotland between January and June, rising 46 per cent from 479 in the previous six months.

Of the 698 cases the vast majority (661) involved a company liquidation while 37 were administration and receivership appointments.

The number of insolvencies in the quarter ending June 30 is similar to that of the same period the previous year.

KPMG’s head of restructuring Blair Nimmo said: “The ongoing Brexit discussions and change of prime minister and Cabinet have undoubtedly create a climate of uncertainty but there are wider challenges at play, creating a toxic mix of issues for businesses going through a period of distress.”